Business Context and Reporting Period
This Form 6-K filing by Golar LNG Limited covers the month of July 2012. The report discloses a significant corporate development: the award of Chile's first Floating Storage and Regasification Unit (FSRU) project, known as "Gas Atacama," to Golar. The contract was signed on July 5, 2012, in Santiago, Chile.
Key Financial Metrics and Project Economics
The filing does not provide consolidated revenue, profit, cash flow, or balance sheet metrics for the company. Instead, it outlines the projected financial performance of the specific Gas Atacama project:
- Projected EBITDA: Approximately US$48 million per year for a 15-year charter or US$47 million per year for a 20-year charter.
- Contract Term: Initial term of 15 or 20 years (at Gas Atacama's option).
- Extension Options: Three five-year options, potentially adding 15 years of commitments.
- Asset Specifications: Newbuild FSRU with 170,000 m3 LNG storage capacity and 180 MMcfd daily regasification capacity.
- Delivery Date: Fourth quarter of 2015.
Material Changes and Contractual Conditions
The primary material change is the execution of the Gas Atacama contract. However, the filing notes that full commitment to the transaction is conditional. The deal is subject to Gas Atacama achieving a specific threshold of new power sales agreements prior to December 31, 2012. Additionally, Golar is obligated to offer the vessel to Golar LNG Partners L.P. for sale, as the contract term exceeds five years.
Outlook, Risks, and Contingencies
Outlook: The project is intended to supply the 780MW Central Térmica Atacama thermal power plant, with potential additional supply to mining customers and other power generators. There is an agreed possibility to expand regasification capacity to 360 MMcfd per day.
Risks and Contingencies: The primary risk is the failure of Gas Atacama to meet the power sales agreement threshold by the end of 2012, which would prevent full commitment to the transaction. The project involves a newbuild vessel with a delivery date in late 2015, introducing execution and timing risks.
Key Facts for Investor Verification
- Verify whether Gas Atacama has met the power sales agreement threshold by December 31, 2012, to confirm the deal's finality.
- Confirm the selection of the initial charter term (15 vs. 20 years) by Gas Atacama.
- Monitor the progress of the newbuild FSRU construction and the Q4 2015 delivery timeline.
- Assess the financial impact of the mandatory offer to sell the vessel to Golar LNG Partners L.P.